India’s consumer durables boom has a US$ 5.27 billion localisation opportunity: Report
- IBEF
- September 25, 2026
India’s consumer durables market is projected to grow 8-10% annually to reach Rs. 3-3.25 lakh crore (US$ 31.59-34.22 billion) by 2030, creating an additional domestic value addition opportunity of Rs. 40,000-50,000 crore (US$ 4.21-5.27 billion), according to a joint report by Boston Consulting Group (BCG) and Confederation of Indian Industry (CII). India currently captures around 50-55% of the sector’s potential through domestic value addition, which could increase to 65-70% by 2030 as component manufacturing expands. However, the report noted that faster localisation will be important to reduce dependence on imports. Localisation currently ranges from 25% to 70% across major consumer durables categories, with televisions and air conditioners at the lower end, while refrigerators and washing machines have higher levels of domestic sourcing.
Critical components such as television display panels, air conditioner compressors, refrigerator insulation and washing machine motors remain challenging to localise due to technology access, manufacturing scale and cost competitiveness constraints. Rising incomes, easier access to financing, premiumisation, replacement demand and the growth of nuclear families are expected to support domestic demand through 2030. Household penetration of large appliances in India remains 20-90 % points below regional peers, indicating further scope for market expansion. India currently accounts for less than 1% of global consumer durables trade, with exports largely concentrated in regional markets such as SAARC countries and the UAE. The report recommended stronger component ecosystems, testing and certification infrastructure, technology partnerships and improved logistics connectivity to support global competitiveness. Greater investment in research and development (R&D), product innovation and the use of generative artificial intelligence (AI) and agentic AI could further improve productivity, while a predictable regulatory environment could support long-term investment.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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